Research Director Tim Lawless shares commentary on today's RBA cash rate decision.
The easing in the trimmed mean rate of inflation, soft economic growth and a gradual loosening in labour markets has been enough to stave off another rate hike, with the RBA’s board deciding to keep the cash rate steady at 4.35%, where it has held since November last year.
With the quarterly rate of core inflation easing back to 0.8% in the June quarter, in line with the RBA’s May forecast and down from 1.0% in the March quarter, much of the pressure has come off the RBA to lift rates. A slowdown in job growth and a subtle lift in the unemployment rate were also at play in keeping rates on hold.
Although a stable interest rate decision is seen as a positive for borrowers and housing more broadly, we aren’t expecting today’s outcome will have a material influence on housing trends.
Read more-
Reference Corelogic 6th August 2024